From today, around 273,000 families will receive a letter from Centrelink to explain new requirements for Family Tax Benefit Part A for children aged 16 to 20.
Legislation passed by the Parliament last week will make participation in education or training a requirement for payment of Family Tax Benefits for young people aged 16 and over.
From January 2010, a child aged 16 to 20 will have to be studying towards Year 12 or equivalent qualification, or have completed such a course, to be eligible for Family Tax Benefit Part A.
These letters aim to give young people not in full-time study, time to enrol in an approved course of education.
The course must assist or allow the young person to complete a Year 12 or equivalent qualification, considered to be a Certificate Level II course under the Australian Qualifications Framework.
Exemptions will apply when the young person lacks the capacity to study due to illness or impairment, where there is no locally accessible course, or if other special circumstances exist.
Families will receive another letter in March 2010 requesting they provide Centrelink with details of their child’s educational status to establish whether the child is meeting the new eligibility requirement.
If their 16-20 year old child already has a Year 12 or equivalent qualification, or is enrolled in an approved course, then they will be considered to have met the requirement.
Family tax benefit Part A for young people aged over 21, and family tax benefit part B for young people aged 16 to 18, already have a full-time study requirement.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
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